iCrowdNewswire Feb 25, 2021 7:58 AM ET
Bitcoin and online gambling are a match made in cyberspace, and it looks like the couple will have a long and fruitful relationship for years to come. The most popular form of digital currency, Bitcoin has become a preferred payment system for many gamblers.
As Bitcoin’s legitimacy has grown, people have come to use it as a shopping payment system and an investment tool, as well as in online casinos.
It is one of hundreds of hundreds of cryptocurrencies based on blockchain technology, which makes it peer-to-peer and independent of any banking system or government entity.
A Brief History of Bitcoin Casinos
Bitcoin is the original digital currency and has mysterious roots, a controversial ascension, and history of volatility in value.
It was created in 2008, as international banking was falling apart and driving worldwide recession. A computer programmer or programmers under the name of Satoshi Nakamoto developed it as an alternative online currency. The first transactions were made in 2009 when a bitcoin was worth less than $1.
After Bitcoin had established some credibility, online casinos took note. Although unique sites with Bitcoin games emerged as early as 2011, the first Bitcoin casino was licensed in 2014. It didn’t take long for other casinos to start accepting the digital currency. Now dozens of casinos welcome Bitcoin as a payment method. Even more casinos accept other cryptocurrencies.
Bitcoin has since had several surges in popularity and value – and just as many dips. In 2017 the value of a bitcoin (BTC) shot up to more than $20,000, and it recently hit a high of more than $40,000.
A Currency Revolution: Cryptocurrency vs. traditional payment methods
The significant difference between cryptocurrency and traditional currency is in how the movement of money works.
First of all, it is strictly digital – there is no physical coin or scrip.
Bitcoin and other digital currencies are based on an open-source transaction ledger called a blockchain, with units “mined” through the high-tech process of recording and storing transactions. This process makes the exchange of coins strictly peer to peer, which means buying, selling, or trading does not come under any bank or regulatory authority.
Each Bitcoin owner has a “wallet” and a unique code used for any purchase. That code and an amount, which is easily converted into any conventional currency, are all that is needed for the transaction.
That makes the transaction quick, safe, and as anonymous as the parties want.
Why Bitcoin Gambling is on the Rise
It is easy to see how blockchain and cryptocurrency technology could revolutionize online gambling by looking at these currencies’ attractive elements.
With Bitcoin, everything is done strictly in cyberspace and on a peer-to-peer basis. No other bank or third party is involved in a transaction.
The speed, security, and anonymity of Bitcoin transactions make it a favorite of gamblers.
Plus, some of the most popular and reputable internet wagering sites in the world accept Bitcoin. The number of those sites should continue to grow as Bitcoin continues to prove its permanence and legitimacy as a currency.
Bitcoin is the New Fad, and Bitcoin Gambling is the Next Step
Bitcoin gambling has plenty of growth potential because both online wagering and Bitcoin have room to grow.
There are more than 18 million bitcoins in circulation. No more than 21 million bitcoins can be mined because the developers don’t want Bitcoin to be like a fiat currency that arbitrarily prints units like dollars. But experts say that limit is still a long way off.
Meanwhile, the online betting market is currently in a growth spurt primarily because of the ever-changing US industry. While most US gamblers still turn to offshore websites, people from 15 states can now use domestic internet wagering sites. Look for that number to grow as more states see the revenue potential and change their laws.
The continued expansion of mobile technology also means that online gambling sites will reach more people worldwide.
The Benefits of Cryptocurrency Casinos for Players
The reason that Bitcoin and online casinos go hand-in-hand lies in the features that digital currency offers. Here are some of the benefits to wagerers:
Safety – The nature of the blockchain and the 34-character address of each owner make purchases and exchange of digital currency exceptionally secure. This type of encryption and decentralization provides for transactions that are safer than credit cards.
Speed – Credit cards and third-party payment systems often require a wait of up to three days for casino deposits and a month for withdrawals. The vast majority of cryptocurrency exchanges are instant.
Anonymity – When a payer uses Bitcoin, the casino doesn’t care who you are or where you live. The casino doesn’t have to consider the banking regulations of any country. It sees only the Bitcoin address and knows automatically if the funds exist to justify the transaction. A Bitcoin wallet makes for a perfect account to set aside for a betting bankroll.
“Provably fair” games – With cryptocurrency, a casino can offer a function that provides for verifying the fairness of each transaction in a game. In other words, a player can go to an open-source section and check the algorithmic function of a game. Of course, not everyone is a programmer and may not be able to read these codes. But if a casino offers provably fair games, there is a good assurance that the deal or spin is on the level.
Special Bonuses – Online casinos encourage the use of Bitcoin and other cryptocurrencies by offering bonuses. It is common for casinos that accommodate different forms of payment to give special attention to Bitcoin depositors by offering bonuses that match their deposits.
The current situation in the online gambling world bodes well for the future of Bitcoin wagering.
Since states and nations have not been able to keep up with the growth of internet betting, there is a mish-mash of laws and banking regulations regarding online gambling. That makes Bitcoin a good option for online gamblers because they don’t have to worry about the casino accepting their payment system.
There are still fewer than 250 crypto casinos. As Bitcoin and other cryptocurrencies continue to gain a reputation for reliability, it stands to reason that more of the estimated 300 million online gamblers will choose digital currency to fund their recreation.